Construction & Building

Obama’s “HomeStar” Lifts Off in Savannah

Last Updated on Tuesday, 02 March 2010 21:58 Written by Administrator Tuesday, 02 March 2010 21:51

By Ted Carter

An audience of Savannah business leaders, government officials and Democratic Party supporters heard a pitch early Tuesday afternoon at Savannah Technical College from President Barach Obama for a “HomeStar” energy initiative that would give rebates to people who retrofit their homes with energy-saving materials.

Obama launched the HomeStar campaign with a congratulatory pat on the back to the college’s“green energy” instruction program and the local “YouthBuild” workforce effort that teaches youngsters the construction trades, including heating and air-condition systems, in a laboratory setting. He toured lab and class areas before delivering his speech.

Savannah Tech, he said, “will become a role model for clean energy” instruction.
And YouthBuild will provide students “job skills that will help them the rest of their lives.”

The Recovery Act, or Stimulus, contained significant amounts of money for community colleges and schools like Savannah Tech to train future workers in the “clean energy field.” That investment will help make the U.S. a leader in the global economy, Obama predicted.

“We ought to embrace what happens on this campus,” he said.

He acknowledged the job loss pain Georgia is feeling with the deep and sustained recession, but pledged that his principal domestic focus will be job creation. For Georgia, that has meant “more than 300 transportation related projects” from the Economic Recovery Act.

Further, he said. Georgia will share significantly in his nuclear power initiatives with federal financial backing for the Southern Company’s planned expansion of its Burke County nuclear power plant. The new reactor at the plant near Augusta will create 3,000 construction jobs and 800 permanent jobs in the state, he added.

The president said he expects his HomeStar program will gain ample bipartisan support in Congress. The contractors doing the retrofits will be local and the materials used will be made in the United States, Obama said.

“It’s hard to ship windows from China,” he added, predicting the initiative would create tens of thousands of jobs in a construction and building supply sector that has a jobless rate of near 25 percent nationally.

HomeStar “will create businesses and create jobs up and down the economy,” he added.
It is going to be politically difficult to do some of this," he said.

"I am confident we can do it. Savannah Tech is leading the way. A whole bunch of folks in this room are leading the way. I just hope that Washington stands alongside you in making sure we have the kind of energy future we need."

The HomeStar program includes:

*$3,000 Gold Star Rebates: Consumers interested in more comprehensive energy retrofits would be eligible for a $3,000 rebate for a whole home energy audit and subsequent retrofit tailored to achieve a 20 percent energy savings in their homes. Consumers could receive additional rebate amounts for energy savings in excess of 20 percent. Gold Star would build on existing whole home retrofit programs, like EPA’s Home Performance with Energy Star program.

*Oversight to Ensure Quality Installations: The program would require that contractors be certified to perform efficiency installations. Independent quality assurance providers would conduct field audits after work is completed to ensure proper installation so consumers receive energy savings from their upgrades. States would oversee the implementation of quality assurance to ensure that the program was moving the industry toward more robust standards and comprehensive energy retrofit practices.

*Support for financing: The program would include support to state and local governments to provide financing options for consumers seeking to make efficiency investments in their homes. This will help ensure that consumers can afford to make these investments.

After leaving Savannah Tech, Obama surprised diners at Mrs. Wilkes' Dining Room on West Jones Street. Passersby were stopped along the brick sidewalk at each corner while the
president entered. About 50 people packed the dining room, and all stood as Obama shook hands in the low-ceilinged room.

Ed and Carol Enciso of Chicago got to shake hands with the president and she got a photo.She got a picture of Obama. "This is the most exciting thing!" She said. Obama sat with six guests and Savannah Mayor Otis Johnson, who sat to his left.

Fried chicken was piled on a plate in front of them, and as Obama
chatted with a man from Charlotte, N.C., he spooned baked beans and ambrosia on his plate.
To the press, he said "I don't want any lectures about my cholesterol.
“Don't tell Michelle."

Feb.22 - Waiting for the Light to Change: Builders, Suppliers Rely on Patience, Resourcefulness

NEWS - Construction & Building

Last Updated on Tuesday, 23 February 2010 14:44 Written by Administrator Tuesday, 23 February 2010 14:02

Waiting for the Light to Change: Builders, Suppliers Rely on Patience, Resourcefulness

By Ted Carter
TBJ Staff

Back in mid January, the audience at the Savannah Area Chamber of Commerce Outlook 2010 luncheon heard a prediction that Savannah would see the start of a sustained economy recovery in the third quarter.

But a significant qualifier accompanied the welcome news: home builders and construction supply businesses will probably have to wait for their rebound, according to Robert T. Sumichrast, dean of the University of Georgia’s Terry College of Business.

It’s true that “substantial price declines have made homes more affordable,” he said, adding that in 2010, “Home sales will help propel Georgia’s economy forward.”

But on the way to 2011, continued tight credit and builder concerns over a glut of foreclosed homes will decrease construction spending, Sumichrast predicted.

For Ray Gaster, a supplier of lumber and building materials, that means more to grin and bear after a year in which business dropped by 40 percent.

Gaster says his lone option is to pursue new lines of business while waiting for the light to change. “You try to figure out how to get more out of each house you supply,” said Gaster, whose Gaster Lumber and Hardware has locations in Savannah, Bloomingdale, Eulonia and Hardeeville, S.C.

Likewise, small Savannah builders like Whitlow Construction and larger ones like J.T. Turner Construction will join in the waiting, though both building companies agree with Dean Sumichrast that business should pick up by this time next year.

“Every forecast that we have received and researched has noted that the construction sector will be in recovery mode by 2011,” in the opinion of Tripp Turner, J.T. Turner’s director of business development.

“Our backlog of construction opportunities suggest that this will be true,” he adds.

To help ensure the rebound comes, said Turner, “we need to continue to encourage local citizens to select area contractors and local vendors for all their building needs.”

Jeff Whitlow, a custom homebuilder and renovator who owns Whitlow Construction along with wife Luann, said he thinks the construction picture “will improve some” this year. The improvement will come with more renewed confidence by buyers, he believes.

“Now is a good time to move forward,” according to Whitlow, emphasizing he expects that buyers waiting for further price declines will see only higher prices later.

Current attractive prices all but ensure a better 2010 than 2009, according to Whitlow, who said his company, whose work includes estate homes at Telfair Plantation, has made it through the slump without any unsold inventory. “I’m the exception,” he said.

Whitlow Construction will continue with some custom home building and expects to team with a developer on spec home construction, he added, and said he also expects to further cement his company’s niche of new construction in Savannah’ historic district.

Meanwhile, Whitlow Construction expects to pay less for its materials, as does J.T. Turner Construction.

“Potential clients are presented with a prime opportunity to build and/or renovate at this time due to more economical material costs and labor costs,” according to Turner.

So far, lower costs of materials have not necessarily led to more business for suppliers, according to Gaster.

He said his inventory is about 40 percent of where it was at the height of the building boom at mid decade. And inventory is staying put longer, he noted.

“In the old days,” he typically kept a three-week supply of inventory, but “nowadays I have more like a 45-day supply,” Gaster said.

With prices dropping and inventories not moving, a lot of saw mills and makers of Oriented Strand Board have shut down, according to Gaster.

Right now he’s getting about $6.50 a sheet for Oriented Strand Board, or OSB, a board of dried wood chips, glue and additives. Gaster said he’s accustomed to getting $10 to $12 a sheet.

The upside is the higher prices could return at the first sign of a rebound in home prices, he noted. “Any up tick should drive prices up sharply,” perhaps 30-50 percent.

What will drive up the prices? Labor, steel and copper, he said.

Low construction labor costs “will only hold up so long,” Gaster said, adding he expects those costs “to incrementally pick up.”

And “what we’ll be watching closely is steel,” he said. “One bellwether is rebar,” referring to rods of re-enforced steel. The stick of steel rebar that sold for $15 a year ago is down to $5.”

Meanwhile, “copper and wiring is headed up,” he said, attributing the climb in copper prices to renewed construction activity in China.

He’s not expecting a boost from President Obama’s proposed “cash-for-caulkers” program that would give homeowners cash incentives to make their homes more energy efficient. In a different time the proposal would be sound. But with many homeowners owing more on their residences than the homes are worth, the proposal misses the mark, Gaster believes.

“They are out of touch,” he said of Obama administration policy makers. “People are not going to fix up a depreciating asset.” Further, many people are struggling just to keep their homes, he adds.

Gaster has tried to wring more business out of the slumping building industry by adding to his offerings. Today you will see his workmen at job sites installing doors fireplaces and closet shelving. “This is going to enable us to grow our business” and increase the chances “at surviving,” he said.

Staying nimble and resourceful will also be a key goal of J.T. Turner Construction in the months ahead, agrees Turner. “Our company is versatile. Not only are we capable of doing a kitchen renovation, but we can also complete projects such as the LEED Certified ILA Pension and Welfare Offices or the renovation of the historic Espy House for Wesley Monumental Methodist Church.”

Stagnant commercial real estate development presents opportunities as well, Turner noted. “We understand that private commercial real estate and development will be more problematic during 2010, but within our region we see expansion in the areas of military, medical, ports authority work, and governmental project opportunities. We feel this is an opportunity to capitalize on the renovation of dated commercial building.”

Wilmington Cabinet Opens Design Center

NEWS - Construction & Building

Written by Administrator Thursday, 10 December 2009 17:47

12/07/2009 - Wilmington Cabinet Company is opening a new design center at 2514 Abercorn St. that will showcase custom cabinetry and the latest design trends in kitchen and baths.

The store will be the first in this region to offer customers the opportunity to view different styles of cabinetry in a whole-room concept rather than looking at single displays. “After talking with many architects and builders in the area, we realized the need for a design center here in downtown Savannah,” owner Will Weeks said in a press statement.

Wilmington Cabinet wants “to offer our client a design experience that competes with larger markets,” he added.
JT Turner Construction managed the build-out of the center.

Southside Baptist and C. E. Hall Move to Arbitration on $3.5 Mil Project

NEWS - Construction & Building

Last Updated on Friday, 13 November 2009 17:25 Written by By Lou Phelps Wednesday, 04 November 2009 16:36

The new recreation center and gymnasium being built by Southside Baptist Church construction project sits dormant on Skidaway Rd. The general contractor is C.E. Hall Construction, Savannah. SBJ Staff Report

10/26/2009 - Drive past the 5500 block of Skidaway Road over the past year and you’ve seen the same thing – a multi-million construction project underway for 17 to 18 months that’s at a dead stop.

The Southside Baptist Church contracted with C.E. Hall Construction to build a new $3.5 million community center and gymnasium for both the church and the neighborhood, but the parties ran into problems.

According to the architect of record, Michael J. Conner of Ternature Architecture in North Carolina, the C. E. Hall firm has been on the job for more than 17 months, and “about four months of work has been completed.”

Due to legal negotiations now underway, Conner said that he could not be specific, but acknowledged, “There have been a lot of problems with the contractor. Yes, the church has had independent engineers looking at the project, and I don’t think they have estimates yet of what might be needed.”

Architects go over the various pay requests, so if there are any financial issues, Conner would also be aware of those problems, and confirmed that there are subcontractors that have not been paid.

The church, which operates a number of community programs including after school enrichment and both male and female youth programs, raised money and secured borrowings for the center. The money to complete the project is in the bank, so the problems are not financial.
While no one will be specific, three sources all report that the construction was not completed work as outlined in the design and some work will have to be redone.

A spokesperson for the church estimates that they have already lost more than $200,000 and hopes that the project will not ultimately go over budget by more than $400,000 beyond what had been originally budgeted. Church sources also confirmed that there are unpaid contractors.
“There is no problem with the land or with the architect; there are no problems with any subcontractors, and the money is in the church’s bank account. The problem is the contractor, and they are in mediation with the contractor,” as required by the terms of the construction contract, said a church leader.

A C.E. Hall work trailer still sits at the work site C.E. Hall Construction spokesperson Donna Kersey will not comment on their issues with the church, but confirmed that the company will be involved in an arbitration session with the church and its representatives within a few weeks, and is optimistic that the issues will get resolved, though the date has not been set. One mediation session has already been held, as required by the construction contract.

She stated that once issues are resolved in arbitration, that it would take about four to five months to finish the center, indicating that her firm would complete the work. But Conner disagrees, estimating it will take at least six months, and confirming that some work will have to be redone, in his opinion.

Southside Baptist Church sits in the Barjan Terrace neighborhood, near Juliette Low Elementary, and provides after school programs, games and a meal to approximately 65 children daily.

The church also offers its long-standing Royal Ambassadors program for young males, with about 60 boys in the program this year which teaches boys life lessons and provides religious training. They also have the “Girls in Action” program for 45 girls this year.

Through weekly meetings, lessons, games, camping trips, sports, crafts, special events and projects, the boys earn badges and awards for their efforts, along with a sense of accomplishment and self-esteem. Some people describe RAs as "Baptist Boy Scouts.”

Owned by Charles E. “Gene” Hall and established in 1978, C.E. Hall Construction is a respected builder in the region, operating also under the Northpoint Real Estate brand, and is the builder of Westbrook at Savannah Quarters.

The company has been the recipient of national recognition in Home Magazine and Building Edge Magazine, and has built high quality custom homes, including new construction in some of Georgia & South Carolina's finest neighborhoods.

They also have extensive experience building churches and church facilities.

Savannah Contractor Jimmy Smith Sees Opportunity in Down Economy

NEWS - Construction & Building

Written by Phillip Wednesday, 04 November 2009 16:16

10/26/2009 - For Jimmy Smith, the tough economy spells opportunity for entrepreneurs. After eight years with D.L. Moore Company, Smith has decided to form his own company, JTVS Builders, a new full-service general contractor offering commercial and custom residential construction in coastal Georgia and South Carolina.

JTVS Builders brings a new approach to the construction market by managing the experience of the client with a hands-on focus to match expectations, says Smith.

“I want the construction experience to be a smooth transition from beginning to end. That’s why I personally have a commitment to each client – to not only build a quality product for you, but to build a relationship with you.”

Smith, a graduate of Georgia Tech, was a project engineer for Beers Construction on the Westin Savannah Harbor and more recently with the D.L. Moore Company, where he managed commercial and residential projects, including expansion of the Bethesda School for Boys campus.

“I view the current economic climate as an opportunity, and my company is bonded and ready to meet future challenges,” said Smith, a LEED professional. “I’m very competitive and I know the market.”

He’s launched a new Web site at www.JTVSBuilders.com where customers can see his construction portfolio.

“I’ve always wanted to open my own business. I looked at the economy, and it felt like a perfect time for an upstart. Every business model I’ve ever studied points this out; a lot of success stories come from recessions, especially the upstart businesses,” says Smith.